As second-quarter earnings season kicks into high gear, investors are keeping a close eye on several key stocks set to report their financial results. Among them is streaming giant Netflix, which is scheduled to release its second-quarter earnings on Thursday. With the stock already up about 35% in 2024, Netflix has one of the highest implied moves at 7.4% according to FactSet data. Analysts are expecting earnings per share growth of around 40% for the media platform, following last quarter’s strong performance that exceeded Wall Street estimates.
Another stock to watch this week is D.R. Horton, a leading homebuilder, which is expected to announce its fiscal third-quarter results on Thursday. Shares of D.R. Horton have seen a modest 1% increase since the beginning of the year, with implied probabilities in the options market pointing to a potential 5% move following the earnings report. The company’s performance will be closely monitored following last week’s positive reaction to cooler-than-expected inflation data, which prompted a shift out of technology stocks in anticipation of lower interest rates.
Taiwan Semiconductor is also on the radar as it prepares to disclose its latest quarterly numbers later this week. The chipmaker’s shares have soared nearly 80% in 2024 on the back of strong demand for artificial intelligence chips. With an implied postearnings move of over 6%, investors are bracing for potential volatility in the stock. Bank of America recently raised its earnings forecasts for the company, citing optimism around continued AI and cloud demand.
In addition to Netflix, D.R. Horton, and Taiwan Semiconductor, there are other stocks that could see significant moves following their earnings reports. United Airlines and Equifax are among the names highlighted in CNBC Pro’s screening of FactSet data. As more companies within the S&P 500 index release their financial results, investors are on high alert for any surprises that could impact stock prices in the coming days.
With earnings season in full swing, volatility is expected to be high for several key stocks this week. Investors should closely monitor these companies’ performances and be prepared for potential market reactions as financial data is revealed.